An Asset That Is Generally Not Expected to Be Converted

question 111

Multiple Choice

An asset that is generally not expected to be converted to cash or consumed within one year or the operating cycle is:

• A) Building.
• B) Accounts receivable.
• C) Inventory.
• D) Supplies.

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Definitions:

Direct Costs

Expenses that can be directly attributed to the production of a specific product or service, such as materials and labor.

Resources

Assets, materials, or other inputs necessary for an organization to produce goods or services and operate effectively.

Expenses

Outflow of money to another person or company to pay for an item or service, or for a category within the income statement.

Costs

The total amount of money required for the production of goods or services, including materials, labor, and overhead expenses.